Neo Performance to sell interest in China rare earth assets; shares rise

China Rare Earth Holdings

20/08/2024 15:40

** Shares of Canada-based rare earth mineral company Neo
Performance Materials  NEO.TO  rise 6.32% to C$8.08
    ** Co signs agreement to sell 86% equity interest in
Jiangyin Jiahua Advanced Material Resources (JAMR) to Shenghe
Resources Holding  600392.SS  for $25.6 mln in cash
    ** Co to sell all of its stake in Zibo Jiahua Advanced
Material Resources to Shenghe Resources for $4.1 mln in cash 
    ** NEO to retain 9% equity interest and exclusive
distribution rights for JAMR's heavy rare earth products outside
China for an initial term of 5 years
    ** Both transactions are expected to close in Q4 2024
    ** Including session's moves, stock is up 6.03% YTD

 (Reporting by Pooja Menon)
 ((Pooja.Menon@thomsonreuters.com))